SA's Nampak to acquire Hunyani, merge Zim units

HARARE – South Africa-based Nampak Limited (Nampak) plans to wholly acquire Zimbabwe Stock Exchange-listed packaging firm Hunyani Holdings (Hunyani) and merge it with two other local units in a share swap deal.

The Johannesburg Securities Exchange-listed group – already holding a 38, 6 stake in Hunyani – intends to merge the unit with dormant CarnaudMetalbox Zimbabwe Limited (CarnaudMetalbox) and MegaPak Zimbabwe (Private) Limited (MegaPak), in which it has a 49 percent shareholding.

“Nampak proposes to expand its investment in the packaging sector in Zimbabwe,” Hunyani said in a cautionary statement.

It added; “Nampak proposes to consolidate its existing business interests in Zimbabwe through the merger of Hunyani, CarnaudMetalbox into one business entity, to be named Nampak Zimbabwe Limited”.

Delta Corporation – about 22 percent owned by SABMiller – holds the other 51 percent in MegaPak.

The transaction will require shareholder approval an extraordinary general meeting, whose date will be advised in due course.

It is based on the acquisition of the entire issued share capital of CarnaudMetalbox and MegaPak in exchange for the issue of new shares in Hunyani to both companies’ respective shareholders.”

For the half year ending April 2014, Hunyani recorded a $219,000 loss after tax, while it recorded a profit of $407,000 prior year comparative.

The group retrenched over 80 percent of its employees due to the harsh economic environment in Zimbabwe.

Two years ago the company announced the disposal of its Botswana waste collections unit following the closure of the firm’s paper mill which had been under care and maintenance.

Incorporated in Zimbabwe in 1951, and listed on the ZSE in 1952, Hunyani has traditionally been a financially secure company due to Nampak’s investment.

A manufacturer of a wide range of packaging products at specialist operations situated throughout Zimbabwe, the group’s diverse range of products includes folding and corrugated cartons, flexible packaging, sacks, bags and labels.

According to Nampak, the three companies were deconsolidated in 2007 as Nampak had lost control over the companies due to the threat of indigenisation, price controls and restrictions on the repatriation of funds from these entities to their holding companies outside Zimbabwe.

Comments (1)

I suspect these were Indigenisation bursting manoeuvrings there. Our SA counterparts outsmarted out there. We need a win-win situation as every job now counts

Samaz Global - 25 July 2014

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